Marginal increase in service tax rate under GST: Adhia

Marginal increase in service tax rate under GST: Adhia

The GST regime may see a marginal increase in service tax on certain services, Revenue Secretary Hasmukh Adhia said on Tuesday. He, however, did not elaborate the quantum of increase in the service tax rate.

The service tax rate is currently at 15% after including the two cesses — Krishi Kalyan and Swachh Bharat.
However, the service tax rates lower than 15% for certain services such as transport sector. Adhia, addressing reporters at a GST conclave on Tuesday, said that those will continue to enjoy a lower service tax regime.

He, however, said certain cesses such Swachh Bharat and Krishi Kalyan cess may go in the new indirect tax regime, making the overall burden of taxes “somewhat” lower for consumers.

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